Latest news with #JimSimons
Business Insider
a day ago
- Business
- Business Insider
Quant pioneer Renaissance Technologies' painful summer continued in July
This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Renaissance Technologies was not immune to the quant market malaise that infected many of its biggest rivals. The Long Island-based money manager lost 5.1% in its largest fund available to investors, the Renaissance Institutional Equities Fund, and 3.9% in its Renaissance Institutional Diversified Alpha strategy, a person familiar with the quant manager told Business Insider. The two funds are still up through 2025's first seven months — gaining 5.6% and 6.5%, respectively — but have lost money in the last two months. The manager declined to comment. The quant pioneer, which was started by the late billionaire Jim Simons and is now run by his one-time lieutenant Peter Brown, is one of many computer-driven hedge funds to get caught up in what one executive called "a long, slow bleed" of systematic losses. The Renaissance Institutional Equities Fund was down close to 6% in June, according to an HSBC report. Managers such as Qube Research & Technologies, Engineers Gate, Man Group, and more have lost money this summer, Business Insider previously reported, despite stock markets ticking up over the same period. Industry experts believed in late July that a turnaround was coming, and data from institutions like Morgan Stanley and Goldman Sachs from the final week of July point to a potential start to a turnaround. Morgan Stanley wrote in a client note that quants made back roughly 30% of their summer losses in the final week of July, for instance. The 43-year-old firm has seen its assets shrink in recent years, but had a strong 2024 with a 22.7% return in RIEF. It was the fund's best year since 2011.
Reuters
30-07-2025
- Business
- Reuters
Why explanations of market moves are so often wrong: Fridson
NEW YORK, July 30 (Reuters) - If you consider it good practice to consult more than one news source, you may have been confused by the reporting of the latest U.S. Consumer Price Index release. And the various interpretations of how that report affected stock prices might have truly left you scratching your head. On July 15, 2025, the Bureau of Labor Statistics disclosed that CPI rose by 2.7% year-over-year in June. According to the Wall Street Journal, that increase 'was in line with forecasts.' Business Insider, on the other hand, used the following headline for its story on the CPI release: 'Inflation surged more than expected in June.' And it added this result surpassed 'the 2.6% expected.' Anyone who read both papers was left wondering whether the 2.7% number did or did not exceed expectations. On top of this there was confusion about the impact of the latest inflation print on financial markets. The Wall Street Journal informed its readers the CPI report 'struck a cautious note on Wall Street, weighing down stocks and lifting bond yields.' The Associated Press chimed in, 'Most U.S. stocks slumped on Tuesday after the latest update on inflation hurt Wall Street's hopes for lower interest rates.' But if the inflation news simply confirmed what analysts had previously predicted, how could the CPI release explain the S&P 500's 0.4% decline on July 15? Even when reporters delved into data on the CPI's subcomponents, they failed to turn up anything that constituted a disappointment versus expectations. The Efficient Market Hypothesis suggests that stock prices at any given moment reflect all known information, which includes forecasts of economic indicators. By that reasoning, the inflation news should not have moved the market unless it represented new information, that is, unless it was a surprise. Daily stock market updates seem to insist on identifying a fundamental cause for any given rise or fall, be it economic, political, geopolitical, or a natural disaster. Conspicuously absent from that list is something that makes up the life's work of a large cadre of market professionals: technicals. The core principle of technical analysis is that past price movements influence future price movements. In other words, a one-day market move may sometimes have more to do with price momentum, a moving average or a resistance level than a specific legislative change or shift in gross domestic product. This idea is anathema to most believers in efficient markets, but they should not be closed to the idea. The late Jim Simons used quantitatively advanced forms of technical analysis to compile a long-term return twice as high as Warren Buffett's, according to data from the Wall Street Journal. Or look at fund manager Bill Smead, who recently warned that investors should be wary of a market downturn not because of weak economic indicators, but instead because stocks had just hit a 'line of death' or a 'death cross,' which is when a 50-day moving average falls below the 200-day moving average. That had not happened since the peak of the dotcom craze a quarter of a century earlier, which was followed by a major correction in 2000. When Business Insider reported on Smead's warning, it suggested he might be worth listening to, considering Morningstar's finding that the Smead Value Fund outperformed 96% of its peer funds over the preceding 15 years. Of course, that does not mean one should take market technicians' findings as definitive. After all, even some technicians themselves characterize their discipline as an art, rather than a science. And for every Simons and Smead, there is an underperforming technical analyst assigning too much value to a head-and-shoulders pattern. The lesson from all this is certainly not that market moves can never have a fundamental cause. For example, it is pretty clear what caused the 12% decline in the S&P 500 in the days following President Donald Trump's "Liberation Day" tariff announcement. But this example isn't the norm, and one should therefore avoid accepting uncritically any statement claiming that one specific catalyst explains a market shift. Understanding what really drives financial markets requires a change in mindset, a willingness to consider fundamental and technical factors and a refusal to accept the simplistic explanations found in most daily market recaps. (The views expressed here are those of Marty Fridson, the publisher of Income Securities Advisor. He is a past governor of the CFA Institute, consultant to the Federal Reserve Board of Governors, and Special Assistant to the Director for Deferred Compensation, Office of Management and the Budget, The City of New York.) Enjoying this column? Check out Reuters Open Interest (ROI),, opens new tab your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI,, opens new tab can help you keep up. Follow ROI on LinkedIn,, opens new tab and X., opens new tab
Yahoo
14-05-2025
- Business
- Yahoo
Renaissance Technologies' Strategic Moves: Apple Inc. Reduction by 0.91%
Renaissance Technologies (Trades, Portfolio) recently submitted its 13F filing for the first quarter of 2025, offering a glimpse into its strategic investment decisions during this period. Founded in 1978 by Jim Simons, Renaissance Technologies (Trades, Portfolio) LLC is a renowned private investment firm based in New York. Known for its pioneering approach in quantitative trading, the firm employs complex mathematical models to analyze and execute trades, many of which are automated. Simons, who stepped down as CEO in 2010 and retired as chairman in 2021, passed away in May 2024 at the age of 86. The firm continues to leverage computer-based models to predict price changes in easily-traded financial instruments, focusing on non-random movements to make informed predictions. Renaissance Technologies (Trades, Portfolio) added a total of 460 stocks, among them: The most significant addition was ServiceNow Inc (NYSE:NOW), with 272,301 shares, accounting for 0.33% of the portfolio and a total value of $216.79 million. The second largest addition to the portfolio was Alphabet Inc (NASDAQ:GOOG), consisting of 1,317,620 shares, representing approximately 0.31% of the portfolio, with a total value of $205.85 million. The third largest addition was American Airlines Group Inc (NASDAQ:AAL), with 17,213,832 shares, accounting for 0.27% of the portfolio and a total value of $181.61 million. Renaissance Technologies (Trades, Portfolio) also increased stakes in a total of 1,470 stocks, among them: The most notable increase was Broadcom Inc (NASDAQ:AVGO), with an additional 2,425,176 shares, bringing the total to 2,427,714 shares. This adjustment represents a significant 95,554.61% increase in share count, a 0.62% impact on the current portfolio, with a total value of $406.47 million. The second largest increase was Alphabet Inc (NASDAQ:GOOGL), with an additional 2,272,750 shares, bringing the total to 2,275,800. This adjustment represents a significant 74,516.39% increase in share count, with a total value of $351.93 million. Renaissance Technologies (Trades, Portfolio) completely exited 588 holdings in the first quarter of 2025, as detailed below: Nike Inc (NYSE:NKE): Renaissance Technologies (Trades, Portfolio) sold all 2,602,101 shares, resulting in a -0.29% impact on the portfolio. AutoZone Inc (NYSE:AZO): Renaissance Technologies (Trades, Portfolio) liquidated all 49,200 shares, causing a -0.23% impact on the portfolio. Renaissance Technologies (Trades, Portfolio) also reduced positions in 1,441 stocks. The most significant changes include: Reduced Apple Inc (NASDAQ:AAPL) by 2,463,237 shares, resulting in a -99.82% decrease in shares and a -0.91% impact on the portfolio. The stock traded at an average price of $231.67 during the quarter and has returned -13.08% over the past 3 months and -15.01% year-to-date. Reduced Palantir Technologies Inc (NASDAQ:PLTR) by 6,499,936 shares, resulting in a -28.52% reduction in shares and a -0.73% impact on the portfolio. The stock traded at an average price of $87.82 during the quarter and has returned 9.25% over the past 3 months and 72.13% year-to-date. At the first quarter of 2025, Renaissance Technologies (Trades, Portfolio)' portfolio included 3,407 stocks. The top holdings included 2.08% in Palantir Technologies Inc (NASDAQ:PLTR), 1.16% in VeriSign Inc (NASDAQ:VRSN), 1.06% in Corcept Therapeutics Inc (NASDAQ:CORT), 1.05% in Robinhood Markets Inc (NASDAQ:HOOD), and 0.99% in Sprouts Farmers Market Inc (NASDAQ:SFM). The holdings are mainly concentrated in all 11 industries: Technology, Healthcare, Consumer Cyclical, Financial Services, Industrials, Communication Services, Consumer Defensive, Basic Materials, Energy, Real Estate, and Utilities. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-05-2025
- Business
- Yahoo
Is Palantir Technologies (PLTR) the Best Stock to Buy According to Jim Simons' Renaissance Technologies?
We recently published a list of In this article, we are going to take a look at where Palantir Technologies Inc. (NASDAQ:PLTR) stands against other best stocks to buy according to Jim Simons' Renaissance Technologies. Even after his passing in 2024, billionaire investor and mathematician Jim Simons remains known as the 'Quant King' of hedge funds due to the extraordinary success of Renaissance Technologies, his quantitative trading firm based in New York. After years of researching the finance industry, Simons realized the untapped potential of employing quantitative analysis to capitalize on market inefficiencies. This insight led him to develop a data-driven investment strategy of analyzing market behavior solely using statistical and mathematical models. By identifying subtle, non-random patterns in financial data, the quant genius predicted future stock movements and generated impressive returns. Although it is closed to outside investors, Jim Simons' secretive Medallion hedge fund, a flagship of Renaissance, has produced ground-breaking results since its inception. The Medallion Fund raked in impressive returns of 56.6% and 74.6% during the early 2000s dot-com crash and the global financial crisis between 2007 and 2011. The fund has maintained a substantial annual return of 31.5% since its first two years of operation. At the time of his death, Simons was worth $31.4 billion, ranking him among the world's wealthiest individuals, thanks to the strong market performance of the Medallion Fund and Renaissance. READ ALSO: and . Renaissance Technologies' computer-driven powerhouse came off to a great start after a stellar performance in 2024. The Renaissance Institutional Diversified Alpha Fund has gained 9.05% as of February, continuing to build on its impressive 2024 return of 15.6%, which was its best since its inception in 2021. Meanwhile, the Renaissance Institutional Equities Fund has had its best start in over ten years, rising 11.85% in the first two months of 2025. Both funds are allowed to maintain sizable individual stock positions in addition to using stock index futures and options to help manage risk. However, the firm warns that it may be difficult to quickly unwind these sizable holdings without impacting market prices. For this list, we picked stocks from Renaissance Technologies' 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A software engineer manipulating a vast network of code on virtual monitors. Palantir Technologies Inc. (NASDAQ:PLTR) is a software and data analytics company that develops platforms for large corporations, financial institutions, and government organizations to analyze massive amounts of data. Its government sector serves customers from the US government and non-US government agencies, while the commercial segment oversees clients from various non-governmental industries. On May 6, Cantor Fitzgerald raised its price target for Palantir Technologies Inc. (NASDAQ:PLTR) from $98 to $110 with a Neutral rating on the stock. This change follows Palantir's first-quarter 2025 earnings, which beat the Visible Alpha consensus by 2.5%. The company attributed this outperformance to strong results in the U.S. commercial sector, where revenue surpassed projections by 10%, and overall government revenue, which was 5% higher than anticipated. However, Cantor Fitzgerald observed that the degree of revenue outperformance was lower compared to the prior quarter, despite the report's positive aspects. Due to persistent challenges across Europe, international revenues, especially among the commercial sectors abroad, fell 16% short of projections. Ithaka US Growth Strategy stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q1 2025 : 'From the front-lines of warzones to Fortune 500 enterprises, Palantir Technologies Inc. (NASDAQ:PLTR) builds software to address high-level action items, respond to defense and security concerns, and improve organizational efficiency. The company offers a number of software products from data analysis and curation (Palantir Gotham and Foundry) to a cloud-based operations software (Apollo). The company rose to popularity, in part, due to several government contracts (~55% of revenues) arising from recent and continuous global conflicts. In addition to creating generative AI defense solutions for governments across the globe, commercial customers (~45% of revenues) have flocked to the company's security and data analysis solutions to monitor and analyze business data and protect sensitive information. The stock's rise in the quarter was due to a strong earnings report that beat Street expectations as well as investor excitement with regard to the company's ability to further monetize its AI product across its growing customer base.' Overall, PLTR ranks 1st on our list of best stocks to buy according to Jim Simons' Renaissance Technologies. While we acknowledge the potential for PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PLTR but trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
11-05-2025
- Business
- Yahoo
Is Airbnb (ABNB) Among the Best Stocks to Buy According to Jim Simons' Renaissance Technologies?
We recently published a list of In this article, we are going to take a look at where Airbnb, Inc. (NASDAQ:ABNB) stands against other best stocks to buy according to Jim Simons' Renaissance Technologies. Even after his passing in 2024, billionaire investor and mathematician Jim Simons remains known as the 'Quant King' of hedge funds due to the extraordinary success of Renaissance Technologies, his quantitative trading firm based in New York. After years of researching the finance industry, Simons realized the untapped potential of employing quantitative analysis to capitalize on market inefficiencies. This insight led him to develop a data-driven investment strategy of analyzing market behavior solely using statistical and mathematical models. By identifying subtle, non-random patterns in financial data, the quant genius predicted future stock movements and generated impressive returns. Although it is closed to outside investors, Jim Simons' secretive Medallion hedge fund, a flagship of Renaissance, has produced ground-breaking results since its inception. The Medallion Fund raked in impressive returns of 56.6% and 74.6% during the early 2000s dot-com crash and the global financial crisis between 2007 and 2011. The fund has maintained a substantial annual return of 31.5% since its first two years of operation. At the time of his death, Simons was worth $31.4 billion, ranking him among the world's wealthiest individuals, thanks to the strong market performance of the Medallion Fund and Renaissance. READ ALSO: and . Renaissance Technologies' computer-driven powerhouse came off to a great start after a stellar performance in 2024. The Renaissance Institutional Diversified Alpha Fund has gained 9.05% as of February, continuing to build on its impressive 2024 return of 15.6%, which was its best since its inception in 2021. Meanwhile, the Renaissance Institutional Equities Fund has had its best start in over ten years, rising 11.85% in the first two months of 2025. Both funds are allowed to maintain sizable individual stock positions in addition to using stock index futures and options to help manage risk. However, the firm warns that it may be difficult to quickly unwind these sizable holdings without impacting market prices. For this list, we picked stocks from Renaissance Technologies' 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A vacation home luxury bedroom setup with stunning decor showing a desired getaway experience. San Francisco-based Airbnb, Inc. (NASDAQ:ABNB) runs an online marketplace that links homeowners with travelers seeking accommodation. DA Davidson reiterated its Buy rating and $155 price target for Airbnb, Inc. (NASDAQ:ABNB) on May 5. The company's analyst, Tom White, maintained his evaluation after examining Airbnb's 2025 first-quarter results. Although the company's foreign exchange-neutral gross bookings and revenue growth aligned with projections, adjusted EBITDA exceeded them, despite unit growth being marginally below forecasts. Although there was some observed softness in the U.S. market, where North America accounted for 45% of Airbnb's 2024 revenue, the analyst pointed out that the situation appeared to be more related to customers delaying decisions on longer-lead-time trips than a shift towards lower-priced options. Moreover, the company plans to relaunch its Experiences platform and add traditional hotel inventory, which may impact its development. Airbnb's management remains confident in its strategic positioning and long-term EBITDA margin guidance of 34.5% by FY25. Oakmark Global Fund stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its : 'Airbnb, Inc. (NASDAQ:ABNB) is an online marketplace to list, discover and book unique accommodations worldwide. The company benefits from a strong network effect between its guests and hosts. We believe there is a long growth runway as global travel is an attractive market, and alternative accommodations have been taking share. We anticipate Airbnb will drive further growth by creating more valuable services for both sides of its network. This includes the potential for paid placement, which has created significant economic value for comparable market places. In our view, management is aligned with shareholders and well qualified to lead Airbnb as the company attempts to capture these growth opportunities. Short-term concerns about the macro travel environment and declining margins stemming from growth investments allowed us to purchase shares at a discount to our estimate of business value.' Overall, ABNB ranks 8th on our list of best stocks to buy according to Jim Simons' Renaissance Technologies. While we acknowledge the potential for ABNB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ABNB but trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . 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